The David McWilliams Podcast The Price is Wrong with Brett Christophers
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May 23, 2024 Acclaimed author Brett Christophers discusses the economics of climate change, questioning the profitability of renewables for big companies. The podcast challenges conventional wisdom on effective climate action, advocating for alternative strategies and state financing for critical infrastructural projects.
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Renewables' Low Investibility
- Renewable energy deployment isn't attractive profit-wise.
- Low returns discourage investment, hindering the transition from fossil fuels.
Profit Constraints in Renewables
- High upfront costs and low electricity prices squeeze profit margins in renewable energy.
- Competition and government efforts to keep prices low further constrain profitability.
Debt Financing Hurdle
- Renewable energy projects often rely heavily on debt financing (60-90%).
- Banks hesitate to lend due to low and volatile returns, hindering project development.